Price Logics
Price logic allows you to build some intelligence into the way your shop calculates prices. Want low-cost cables to carry a higher margin than high-cost laptops? No problem. Want to give your favourite customer preferential pricing? No problem.
General information about price logic
You specify, per price logic, what margins a certain selection or product should bear. The calculated output prices can be checked via the price test. It is possible to specify ten different margin levels (ten price levels) per price logic, and you specify on the customer card which price level generally applies to the customer. The basic ten price levels, from 1 to 10, can be supplemented by customer- or customer-group-specific price logic.
Nettailer comes with two general pricing logic's. One of these, called "General," cannot be edited or deleted. This price logic acts as a lifeline if you or someone else happens to remove your specific general price logic. Note that you must change the pre-filled values in the editable general price logic to the margins that are relevant in your case. If the general price logic is removed, or if the date has expired, the general price logic that cannot be removed will be used. The general price logic is used as a parachute to collect the products that do not fall within the scope of any other price logic.
The general price logic can be supplemented by a free number of price logics that specify marginal levels at the manufacturer, category, or product level. For example, you can create a price logic that provides a unique margin level for the manufacturer, "HP." You can then refine the model with a new supplementary price logic with a different margin level for, for example, the category "Computers/Laptops / Hewlett Packard." If necessary, in the next step, you can refine the price logic to give the desired margin per product.
The general price logic can be supplemented with customer-specific price logic. These work together with the price level allocated to the customer on the customer card, for example, "Price level 7." In practise, a price level is created for a particular customer in combination with a manufacturer, category, or product. This makes it possible to give customer A an extra price level with, for example, a 7% margin on Apple's product range instead of the 10% that would have been obtained according to the general price level.
There are great opportunities to tailor and fine-tune the pricing structure. When you create your price logic structure, it is important that you think through which methodology is useful for your business. The basic idea is that you should be able to divide your customer base into different segments. For example, a certain similar customer segment is linked to “Price Level 2,” while another customer segment is linked to “Price Level 7." The assigned price level should cover most scenarios for the customer, but can be supplemented with customer-specific price logic if necessary. The basic version offers ten different price levels for managing customer segments. Our assessment is that a normal retailer defines between twenty and forty general price logics, which are then supplemented with customer or customer group-specific exceptions.
Create or Edit price logic.
Feature
What it does
Label
Give your price logic a unique, meaningful name.
From date
Enter the date you want the price logic to become active.
To date
Enter the date you want the price logic to be deactivated.
Manufacturer
Pick which manufacturer the pricing logic will affect. If you don't pick an option, your pricing logic will affect every manufacturer.
Category
Pick the category, subcategory, and product family that the price logic will affect.
Product
Specify the stock code if you want the price logic to only affect a single product.
Price type
Select if the price logic is for 'normal' costs, 'BID' costs, or both.
Handy Hint
Price level 1 is the default price used for customers who are not logged in. This can be changed in Settings > Defaults > "Price levels."
Types
Feature
What it does
Type
Specify the type of price logic. 'Global' means the price logic will affect every customer (unless customers have another price logic connected to them). 'Customer connected' means the price logic will only affect specific customers or customer groups.
Calc type
Learn more about markup vs. margin here: Markup vs Margin
Specify what calculation type the price logic will use.
'Mark up' (increase): this is what percentage of the cost price you add on to get the selling price. 'Margin' this percentage is the percentage of the final selling price that is profit. 'Discount on guide price' will set a price at the specified percentage under in-price (cost price). Example: cost price - discount % = sales price. 'Fixed price' changes the logic, so instead of entering a percentage, you should enter the sell price (exclusive of VAT).
'Discount on general price' — Learn more here: Discount on general price
This will apply a discount against whatever price logic is already applied to an item. Example: sales price minus discount general price % = new sales price.
This option will also display a specified label ("Discount," "Sale Price, etc) that is set up in Settings > Products > Prices
Contribution margin limits ADD-ON
Option to define either a % of fixed value as min/max for profit calculated in price logics.
With option enabled price logics get new section "Contribution margin limits" with following options:
Feature
What it does
Type
Percent or fixed.
Minimum value
Fixed value.
Maximum value
Fixed value.
Price Level
Feature
What it does
Interval
This will set a range of costs; any products with a cost price between these ranges will be affected by this line
Price level: 1–10
Nettailer lets you create ten price levels, which means you should be able to tailor your prices to match your accounts without having to create multiple customer-connected price levels.
Handy Hint
Nettailer allows you to create ten different price levels to allocate to different groups of customers. By default, every customer will see price level 1, but it can be changed in Users > Customers > Customer card > Customer info > "price level."
Example price levels
Example: Default price level
Setting
Value
Label
Default
From date
01/01/01
To date
01/01/25
Manufacturer
Select option
Category
Select option
Product
None selected
Types
Value
Price Type
Normal
Type
Global
Calc Type
Margin
Interval
price level
0.0–10
30
10 - 20
25
20–50
22.5
50 - 100
20
100 - 200
17.5
200 - 500
15
500 - ∞
12.5
This is a fairly typical example of a logic where the greater the cost of the item, the lower the margin applied. In this example, any product that costs £9.99 or less will be given a margin of 30%, whereas any product that costs between £200 and £499.99 will have a margin of 15% applied.
Handy Hint
You should always have a default price logic to act as a safety net and ensure that every product is sold at a profit. With no default price logic, any product with no logic associated with it will be displayed as 'Call for price' in your store.
Example Manufacturer and Category Specific Price Logic
Setting
Value
Label
HP Laptops
From date
01/01/01
To date
01/01/25
Manufacturer
HP
Category
Computers Laptops Select Option
Product
None selected
Types
Value
Price Type
Normal
Type
Global
Calc Type
Margin
Interval
price level
0.0 - ∞
10
In this example, any HP-branded laptop will be given a margin of 10%. Any HP product that is not a laptop will not be affected. Any other brand of laptop will not be affected.
Price Logic Priorities
As the price logic structure is so flexible, it is possible to create overlapping logic's (for example, you could have one logic for laptops and another for every HP product). To avoid any conflicts, we have put in place the following order of priorities:
Going from highest to lowest priority,
Customer-specific price logic on the product (including fixed price logic)
Customer-specific price logic on the subcategory
Customer-specific price logic on the category
Customer-specific pricing logic on the manufacturer
Default price logic on the product (including fixed price logic)
Default price logic on the subcategory
Default price logic on the category
Default price logic on the manufacturer
Default global price logic
Please note that a default or global fixed price will not override any customer or customer group-specific price logic.
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